Jersey City Faces $250M Budget Deficit, New Mayor Says

JERSEY CITY, NJ — Jersey City faces an approximate $250 million budget deficit for 2026, which represents about 28 percent of the city's annual operating budget, new Mayor James Solomon said Wednesday.

Solomon released a comprehensive report, blaming the previous administration of Mayor Steve Fulop for the looming financial crisis.

He said that despite favorable economic conditions for the city, such as rising development leading to a growing tax base, the city has been using too many one-shot revenue sources for years.

The city also has approved questionable expenditures, he said.

Among the issues, Solomon said:

• Nearly $20 million was spent on consultants for the proposed Pompidou satellite museum project, which ultimately failed — including $7.5 million to one architecture firm. (The state pulled funding for the project in 2024, saying it wasn't viable.)
• Nearly 70 percent—approximately $100 million—of the city's federal American Rescue Plan funding was used primarily to provide a one-time, election-year property tax cut in 2021, rather than for long-term investments, Solomon said.
• The city underbudgeted for expenses including over $52 million in unpaid health insurance bills from 2024 and 2025.

"For years, Jersey City residents were told our city was thriving financially. That was a lie," Solomon said.

For comparison, the deficit is six times larger than New York City's budget deficit, the city noted in a release.

But Solomon's administration says it's addressing the crisis. They have hired a new finance director and are bringing in independent municipal budget experts, they said.

A switch in health insurance administrators should reduce expenditures by $30 million in 2026, the city said.

The administration plans to hold community meetings and work with state partners to develop a long-term plan.

See the full financial report here.